IBRA to give 100% interest discount to small debtors

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA), in collaboration with 10 domestic banks, has agreed to provide bank refinancing facilities to indebted small and medium enterprises (SMEs) interested in joining the agency's Crash Program with a 100 percent interest rate discount.

IBRA said on Friday in a statement that the only SME debtors with a maximum outstanding loan of Rp 5 billion (US$602,000), and who would pay their loan in full were eligible to participate.

"This incentive reflects IBRA's concern for retail and SME debtors who are expected to resume their banking activities and revitalize their businesses," the agency said.

The agency explained that the 10 banks comprised Bank Arthamedia, Bank Bukopin, Bank Central Asia, Bank Danamon, Bank Internasional Indonesia, Bank Lippo, Bank Niaga, Bank Patriot, Bank Prima Express, and Bank Universal.

IBRA said that debtors who need refinancing facilities should contact any of the agency's 11 centers located in Jakarta, Bandung, Semarang, Surabaya, Denpasar, Medan, Lampung, Pontianak, Balikpapan, Manado, and Makassar.

It added that the debtors could also contact any of the branch offices of the above 10 banks.

IBRA added that the number of SME debtors under its management reached 75,000 but that they only had a relatively small combined debt of Rp 6.4 trillion.

The agency has received more than Rp 200 trillion worth of non-performing loans (NPLs) transferred from closed down and recapitalized banks.

IBRA is mandated to restructure and recover the NPLs.

The agency is focusing on restructuring more than Rp 80 trillion in NPLs with individual loan size of more than Rp 50 billion owed by its top 21 debtors.

The agency has also reached agreement with a number of banks to help it in restructuring medium size NPLs. (rei)